Depends on the business model. Take Apple and Amazon. Apple makes most of its cash off hardware sales. As such, Apple will never sell you a $50 Mac hoping to make the money back thru services or ad revenue of any kind. And why their HomePods cost 3x more than any smart speaker.
On the other hand, Amazon doesn’t make money off hardware. They routinely blow out Fire products at insane discounts. A 10th of what Apple charges for a comparable product. Because they make their cash of sales and services. Products are just a conduit to more lucrative services.
You can’t lump every company into the same money making MO. Every company tends to have their own unique angle.
Depends on the business model. Take Apple and Amazon. Apple makes most of its cash off hardware sales. As such, Apple will never sell you a $50 Mac hoping to make the money back thru services or ad revenue of any kind. And why their HomePods cost 3x more than any smart speaker.
On the other hand, Amazon doesn’t make money off hardware. They routinely blow out Fire products at insane discounts. A 10th of what Apple charges for a comparable product. Because they make their cash of sales and services. Products are just a conduit to more lucrative services.
You can’t lump every company into the same money making MO. Every company tends to have their own unique angle.